From February 2021, eligible non-bank financial institutions (NFIs) will be able to use PayNow and Fast and Secure Transfers (FAST) for funds transfers between bank accounts and e-wallets, as well as across different ewallets.
These businesses can then receive real-time payments from other users of e-wallets or mobile banking applications within the ecosystem. This will enable businesses to access a larger market of consumers than before for receiving e-payments instantly and seamlessly.
Currently, most e-wallets require the use of debit or credit cards to top-up funds, and funds transfers between e-wallets are not possible.
Announcing the initiative on Monday, November 30, the Monetary Authority of Singapore (MAS) said NFIs that are licenced as major payment institutions under the Payment Services Act will be allowed to connect directly to FAST and PayNow from next February.
The direct connection will enable users of NFI e-wallets to make realtime funds transfers between bank accounts and e-wallets as well as across different ewallets.
“Direct access by NFIs to FAST and PayNow closes the last-mile gap in Singapore’s e-payments journey. Consumers who may not have ready access to debit or credit cards to fund their e-wallets will now have the option to do so directly through their bank accounts," said Ravi Menon, Managing Director of MAS.
"Our vision to enable complete real-time payments interoperability will now become a reality. Adoption of e-payments will become even more simple for individuals and businesses."
